KARACHI, October 24 2024: In a surprising turn against government assertions of falling inflation, prices for essential kitchen items in Pakistan continue to rise, straining household budgets. Recent reports highlight significant increases in the costs of staples such as flour, ghee, and cooking oil.
Retailers have observed that the price of 5-kg bags of branded fine flour has jumped by Rs50, now ranging from Rs630 to Rs650, up from Rs570 to Rs600 just a week prior. The 10-kg bags have seen an even steeper increase, now priced between Rs1,200 and Rs1,300, compared to Rs1,100 to Rs1,200. Other flour varieties have also experienced average price hikes of Rs10 per kg.
Industry experts point to rising wheat prices as a driving factor. A miller noted that the cost of a 100-kg wheat bag has surged to Rs8,200 from Rs7,700, prompting necessary adjustments in flour pricing.
The upward trend isn’t limited to flour; ghee and cooking oil prices have also climbed. Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), confirmed that prices increased by Rs40 per litre or kilogram, following a $200 rise in global palm oil prices, which now stand at $1,100 per tonne.
Compounding these issues, the government imposes a customs duty averaging Rs9,500 per tonne on palm oil imports, resulting in a total tax incidence of Rs100 per kg/litre on ghee and cooking oil. Of this, Rs60 is attributed to general sales tax, further burdening consumers.
With families increasingly affected by these rising costs, urgent government intervention is needed to alleviate financial pressures on households.
